Tag Archives: ngultrum

#Rupee crunch: And now, Assam bans the #ngultrum

Guwahati, Friday, March 23, 2012
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Ban on use of Bhutan currency
Correspondent
RANGIYA, March 22 – After many reports were published on the rampant rise in the use of Bhutanese currency, ‘Ngultrum’ here and at other places, action has been initiated to impose a ban on the use of the foreign currency.

As per reports, the Royal Monetary Authority of Bhutan with the Reserve Bank of India has taken up the matter seriously, particularly the transaction of drafts, which has posed a threat to business. This has led to the initiative to ban Ngultrum use here.

The use of Bhutanese currency was in sharp rise among the businessmen here. The recent move has been welcomed by many, and most them opine that the civil administration should carry out sudden checks in this regard to check the foreign currency use menace on Indian soil.

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Rupee crisis and Bhutan

I couldn’t find a comprehensive write-through on the emerging financial crisis in Bhutan, so I did a little round-up myself on Forbes. Seemed too important a story (especially with people storming a bank the other day) not to at least try to lasso up the issues–although it could take a phD and a lot more time to watch this all evolve to suitably parse out all the issues.

 

http://www.forbes.com/sites/lisanapoli/2012/03/19/trouble-in-shangri-la-the-meltdown-reaches-the-happiest-place-on-earth/?utm_source=alertsnewpost&utm_medium=email&utm_campaign=20120319

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Rupee crunch, consumerism and Bhutan

There’s a run on banks in Bhutan due to the rupee crunch.  The rupee is on par with the Bhutanese currency, the ngultrum, and has, until now, been equally accepted.  The trouble is, in part, due to soaring imports from India and a surge in private loans for cars and housing over the last few years; so says the Royal Monetary Authority.

Translated: consumerism’s grip is taking hold.

Business Bhutan has this comprehensive write-up, which begins: “Bhutan is perhaps facing the biggest economic problem in its history which can lead to a crisis anytime soon if appropriate measures are not taken with the Indian rupee shortage reaching unprecedented levels threatening to hold the Bhutanese economy at ransom.”

Here is another account:

“Thousands of Indian businessmen applied to close their accounts in the banks and withdrew the amount in Indian Rupee. There was a huge rush everywhere as the Central Bank announced in their directives that accounts which are closed on before 9th March may be settled in Indian Rupee. Therefore, there was so much hustle and bustle in the banks, especially in the border towns.  Indians came in scores and took their money worth millions (almost emptying the banks). “

And Kuensel is reporting that software is being installed at banks in Bhutan to keep track of (and limit) currency transfer by Bhutanese of ngultrum to rupee.

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